Non-fungible tokens (NFTs) have been around for a while. However, an explosion in their popularity was seen later in 2021. NFTs came into the spotlight after the sale of one of the most expensive NFTs ever sold. Minting NFTs have also contributed to their rise in popularity as they cost a lot more than regular blockchain transactions like DeFi, endorsements and token swaps. NFTs make headlines most of the time when they involve celebrities. So, if you decide to go into NFT, we will explain the cost of minting NFT to you.
What is NFT really?
The NFT phenomenon has been around since 2014. However, after the Pak sold out, they became incredibly popular. Before the advent of social tokens and NFTs, trading was a significant part of the digital world. People buy/sell or hold digital assets for a long time, but the security and ownership of the digital asset space has been difficult to determine.
With the invention of social tokens and NFTs, it has become easy to demonstrate ownership of digital assets, and their encryption has made it much more secure. So, in short, NFT functions as a digital certificate of ownership of digital assets, which can be something similar to objects and works of art in the real world, such as paintings, music, photography and videography, games, virtual real estate, etc.
NFTs have their own metadata codes stored in digital ledgers using blockchain technology to establish uniqueness and ownership. Non-fungible tokens are one of a kind, meaning one token cannot be exchanged for another. Each NFT value is different.
How are NFTs created?
In blockchain terminology, the creation of an NFT is known as NFT minting. NFT development includes deciding where, when, and how to build an NFT, as well as what tools and technologies to use.
The first step in developing an NFT is to create a unique digital asset. It can be anything from digital images to in-game weapons. Then you should select and set up a crypto wallet and an NFT trading platform.
The next step is to create and display NFTs on NFT marketplaces. You must upload your digital asset file to the marketplace and create the metadata. Once the digital asset is uploaded, you are done creating the NFT. Finally, you can display or showcase NFTs on the marketplace for people to buy, which is often referred to as a listing.
NFT minting costWith
Anyone can create an NFT and it’s also easy to set up accounts on all major platforms such as Opensea, Rarible or Mintable. The most interesting thing about such platforms is that they offer at least two, if not more, blockchains to choose from when creating an NFT.
It is important to note that the creation of NFTs depends on the chosen blockchain. Creating an NFT range from $0.05 to over $60. The most expensive blockchain to create an NFT is Ethereum. On the other hand, Solana is the cheapest. However, this does not include market fees, which range from 2.5% to 5%.
Therefore, some blockchains seem preferable to others. It is amazing to know that the Ethereum blockchain had fees of over $500 for Mint NFT at its busiest time.
Thus, one can choose between blockchains, choosing the cheapest one among them.
We break down the cost of creating NFTs across blockchains in the table below.
The reason for the indifference between Ethereum and other blockchains lies in the consensus mechanism of the Ethereum network. However, Ethereum has undergone a massive upgrade, changing from a Proof-of-Work (PoW) model to a Proof-of-Stake model. After this update, transactions will most likely drop and accelerate.
We see this in blockchains like Solana using PoS and the proof of history (PoH) protocol. Dual protocols allow Solana to deliver more efficient performance. As a result, 65,000 TPS are possible.
However, no matter which blockchain you choose when creating your NFT, there are other transaction costs that you are likely to face. These are:
Minting involves publishing your token on the blockchain. Thus, it is necessary to pay a commission to miners actively working to publish your NFT. Minting is the most expensive NFT creation process.
The marketplace fee depends on the marketplace you use to create your NFT. It is due to such commissions that the marketplace services are compensated. Creating an NFT on any market, regardless of the blockchain, means you have to pay a transaction fee. Each trading platform will have a commission from 2.5% to 5%.
Can NFTs be minted for free?
You can create NFTs for free using the Polygon blockchain. Using the lazy minting feature allows you to create NFTs for free until your NFT is sold. Otherwise, your best bet is to use low-cost blockchains like Solana, Tezos, Avalanche, or WAX to generate NFTs cheaply.
For obvious reasons, very few NFT marketplaces and even fewer blockchains allow you to create NFTs for free. Since one person does not manage blockchains, many people around the world spend their time and resources to maintain each blockchain, so users must pay a fee.
This analysis shows that the creation of NFTs is not expensive. It can be completely free if you choose a popular platform like OpenSea, Rarible or Mintable and tick the lazy minting option.
The cost of creating an NFT mainly depends on the blockchain you choose. Explore different blockchains and choose the best one for your art, collectibles or digital assets.
Vincent Munene is a freelance writer and big blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in turn, he enjoys educating people and informing them about all things blockchain. He is a biochemist by profession and also enjoys playing the piano.